We took a closer look at the 12 countries that have successfully fostered such environments and are leading the way as the most innovative countries in the world, according to data in the WEF's report. Check them out below.

12. United Kingdom

The United Kingdom ranked second in the world for quality of scientific research institutions, and it ranked fourth for university-industry collaboration in research and development.

It scored 34th, however, for government procurement of advanced tech products and 18th for availability of scientists and engineers.

"The country has created a good set of conditions for its vibrant service sector to develop and for London to become the epicenter of the European tech and start-up scene," according to the report.

Source: World Economic Forum

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11. Taiwan

"Magnetic bricks" that can be used on tablet computers to create 3D designs, play games, and interact with others.
Reuters/Pichi Chuang

Taiwan scored 13th in company spending on research and development and 14th in university-industry collaboration in research and development.

It placed 29th, however, for government procurement of advanced tech products and 26th for quality of scientific research institutions.

Taiwan's overall global competitiveness slipped one rank this year, with its innovation and sophistication measure slipping. In fact, the "insufficient capacity to innovate" was listed as one of the most problematic factors for doing business this year, according to the report.

Source: World Economic Forum

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10. Denmark

Astronaut Andreas Mogensen of Denmark.
Reuters/Shamil Zhumatov

Denmark scored eighth for the ratio of PCT patents and applications to its population and 11th for its capacity for innovation.

But it scored 65th for government procurement of advanced tech products and 35th for the availability of scientists and engineers.

Denmark's innovation index remains above that of most developed economies and is one of the factors that make the country a competitive global economy, according to the report.

8. Netherlands

The Netherlands scored sixth for the quality of scientific research institutions and ninth for university-industry collaboration on research and development.

It placed 22nd, however, for the availability of scientists and engineers and 21st for government procurement of advanced tech products.

"The Dutch economy remains one of the most sophisticated and innovative in the world, with an open and efficient goods market," according to the report.

Source: World Economic Forum

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7. Sweden

A general view of Ericsson Globe arena in Stockholm.
Reuters/Christine Olsson/TT News Agency

Sweden ranked third for the ratio of PCT patents and applications to its population and fourth for the capacity for innovation.

But it placed 23rd for government procurement of advanced tech products and 14th for the availability of scientists and engineers.

"The innovation ecosystem in Sweden benefits from high levels of technological adoption and ICT usage, and a sophisticated private sector," according to the report.

Source: World Economic Forum

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6. Germany

The Munich startup Agrilution developed an automated greenhouse appliance known as "plantCube" with the intention of bringing the production of healthier food closer to people.
Reutesr/Lukas Barth

Germany was ranked fifth for capacity for innovation and sixth for company spending on research and development.

The only category in which Germany didn't place in the top 10 was the availability of scientists and engineers, where it ranked 15th.

"The country's innovation system is characterized by high levels of company spending on R&D and a supportive research environment, including business collaboration with universities and strong scientific research institutions," according to the report.

Source: World Economic Forum

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5. Japan

13.4-inch robots called Robi, designed by Tomotaka Takahashi, are able to speak, walk, and dance.
Reuters/Yuya Shino

Japan placed first in the world for the ratio of PCT patents and applications to its population and second in the world for company spending on research and development.

It placed 16th, however, for university-industry collaboration and 14th for capacity for innovation.

"High-quality research institutions and company spending on R&D, coupled with an excellent availability of scientists and engineers, contribute to the country's overall highly innovative environment," according to the report.

Source: World Economic Forum

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4. United States

A brain slice of patient "H.M.," who has been extensively studied because of his inability to form long-term memories after brain surgery in 1953 for his epilepsy.
Reuters/Brian Snyder

The US was second in the world for capacity for innovation and second for university-industry collaboration.

The US placed 11th, however, for government procurement of advanced tech products.

"The United States' major strength is its unique combination of exceptional innovation capacity, large market size, and sophisticated businesses," according to the report. "The country's innovation capacity is driven by collaboration between firms and universities, human capital, and company spending on R&D."

Source: World Economic Forum

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3. Israel

The Israeli defense electronics firm Elbit Systems says it has developed a body sensor that could help save the lives of pilots by forewarning of possible loss of consciousness in extreme maneuvers or because of oxygen starvation.
Reuters/Nir Elias

Israel scored in the top 10 for every category. It placed third in the world for capacity for innovation and third for quality of scientific research institutions.

Its two lowest categories were availability of scientists and engineers (eighth) and government procurement of advanced tech products (eighth).

Overall, Israel ranked as the 27th most competitive nation in the world, with its innovation category leading the way.

Source: World Economic Forum

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2. Finland

Sebastian Nystrom, head of product business at Nokia Technologies.
Reuters/Heikki Saukkomaa/Lehtikuva

Finland ranked first in the world for the availability of scientists and engineers and for university-industry collaboration in research and development.

The only category in which it did not score in the top 10 was government procurement of advanced tech products, where Finland was ranked 33rd in the world.

Finland's "public institutions are transparent and efficient, its higher education and training system is among the best in the world, and its business sector is one of the most innovative," according to the report.

Source: World Economic Forum

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1. Switzerland

The Large Hadron Collider, the world's largest and most powerful particle collider, located near Geneva.
CERN/LHC/GridPP

Switzerland scored first in the world for three categories: capacity for innovation, quality of scientific research institutions, and company spending on research and development.

But it placed 23rd for the availability of scientists and engineers.

"Switzerland leads the innovation pillar, thanks to its world-class research institutions, high spending on research and development by companies, and strong cooperation between the academic world and the private sector," according to the report. "But many other factors contribute to Switzerland's innovation ecosystem, including the level of business sophistication and the country's capacity to nurture and attract talent."